Chris Kempczinski, CEO of McDonald’s, acknowledged that calls for a boycott from pro-Palestinian groups over the Gaza conflict have negatively affected the fast-food giant’s operations in the Middle East. The company faced criticism after images circulated on social media showing franchised stores in Israel providing free meals to the nation’s soldiers following the October 7 Hamas attack.
In response to the Boycott, Divestment, Sanctions (BDS) movement’s call to shun McDonald’s, Kempczinski clarified that McDonald’s has no position on the conflict and is not responsible for the actions of its franchisees. The CEO expressed disappointment in the “meaningful impact” caused by “misinformation” and emphasized that McDonald’s is represented by local owner-operators in every country, including Muslim-majority nations.
While Kempczinski did not provide specific details on the magnitude of the sales impact in the Middle East, McDonald’s operators in several countries, including Saudi Arabia, Malaysia, and Pakistan, have distanced themselves from the actions of franchisees in Israel.
McDonald’s Malaysia recently filed a lawsuit against a BDS offshoot, alleging “false and defamatory statements” related to the Gaza conflict. The company is seeking damages of over $1 million.
The Gaza conflict has led to increased scrutiny of major companies, with Starbucks also facing controversy over a staff union’s expression of “solidarity with Palestine.” Starbucks CEO Laxman Narasimhan stated that the company was a victim of “misrepresentation on social media” regarding its stance on the conflict.
These incidents highlight the challenges faced by multinational corporations in navigating geopolitical issues and the potential impact on their global operations.
